Entrepreneurs in Mexico have Positive ExpectationsBy Jorge Ramos Zwanziger | Fri, 12/04/2020 - 16:39
The entrepreneurship sector in Mexico is starting to become optimistic despite the COVID-19 pandemic, claims the Thermometer on the Perception of Entrepreneurship Ecosystem report from Capital Vent. The report aims to summarize and highlight some of the biggest tendencies observed in the entrepreneurial sector. The Thermometer gathered information from more than 100 companies in Capital Vent’s database, 86 percent of which were Mexican, to have a better understanding of the outlook these companies have currently and for the future. Out of the companies surveyed:
- 50 percent reported better results from what they expected at the beginning of the pandemic.
- 33 percent reported more sales after the pandemic than before, but 52 percent did say they had better sales before.
- 46 percent of companies reported moving to a work-from-home system.
The thermometer highlights the sector’s optimism for 2021 as 58 percent of surveyed companies think things will get better in the coming year, while 50 percent of the companies have positive expectations for the end of 2020. This optimism might make Mexico a more attractive ground for entrepreneurship and investment. This month, Creditas, a Brazilian unicorn fintech, stated an interest in pursuing expansion into the Mexican market. Owner, Sergio Furio, told Forbes Mexico that “it all started last year when we received our last round of financing of US$231 million and began to decide which growth strategies we could implement moving forward. The first decision was to grow in the fintech sector, with new consumption possibilities, and the second was starting a process of internationalization which a very clear objective in Mexico.”
Furio is optimistic about the possibilities the Mexican market has to offer. “We have mainly four types of financial solutions linked to credit, the first is concerning loans with a warranty through real estate, another that loans through a vehicle, a third is automotive financing and, finally, a payroll loan, all of which will be available in Mexico,” he added. Creditas’s objective is that in the next three years the Mexican territory will compose 30 to 35 percent of their current business. Victor Hugo Flores, Partner and Head of Fintual Mexico, recently wrote in MBA about the benefits of Unicorn companies coming into Mexico’s market. “The effect of developing a strong fintech environment is deep and beneficial for the entire country. Having at least 10 unicorns in Mexico in the next five years could transform the financial sector.” Mexico offers opportunities for expansion for companies all over the world.